The ruling would save more than 40 municipal jobs, while concessions from municipal unions helped the township balance its budget.

Menza planned to layoff 49 employees — five police officers, 12 firefighters, 10 public works employees and 22 clerical employees — in October, a measure the mayor said was needed to balance the budget.

But Hillside’s council sued the mayor, claiming layoffs were illegal without its approval. Superior Court Judge John Malone agreed, writing in his ruling last week that Menza "is not empowered to initiate layoffs."

"The council said the mayor alone had no right to lay off employees," said David Fox, the attorney representing the Hillside Fireman’s Mutual Benevolent Association.

While the lawsuit was pending, several of the township’s unions agreed to concessions. The firefighters, DPW workers and clerical employees agreed to give back a 4 percent raise and pay 1.5 percent of their salary toward health benefits. That saved $900,000, said Councilman John Kulish, chairman of the finance committee.

Even with the concessions, the township had to lay off seven employees, Kulish said.

Menza took credit for the concessions, saying the unions were more amenable to givebacks because they were faced with the prospect of layoffs.